Jan Kubíček: We’re approaching the neutral rate, room for further rate cuts is limited
In an interview for Reuters, CNB Bank Board member Jan Kubíček said he was leaning towards a pause in interest rate cuts at the next monetary policy meeting. The main rate is gradually approaching its neutral level of around 3.5%. Inflation risks persist, so there’s no reason why monetary policy should be in expansionary mode now. Further rate cuts could only occur if the economy slowed sharply or inflation fell below the level expected by the central bank. He also pointed to the need to carefully monitor wage growth and rising property prices, which could increase inflation again.